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The Katz Group is asking for a special bylaw exemption to open a liquor store in the Ice District and Edmonton city council indicated it is at least willing to listen.

The major downtown developer wants a liquor store on the ground floor of the Stantec Tower, now under construction near the corner of 102 Street and 103 Avenue with a grocery store planned for the second floor.

Katz Group wants a special deal for liquor store in Ice DistrictBack to video

But the new liquor store would be roughly 30 metres — just across the street — from an existing liquor store located in an alley just outside Ice District boundaries. Zoning rules ban anyone from opening a new liquor store within 500 metres of an existing store anywhere within the mature neighbourhood area of the city.

In a 6-5 vote, council decided to require tighter rules around the exemption — on the location, number of stores and size — before considering it for approval. The application returns to council Feb. 12.

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Downtown Coun. Scott McKeen said he made that compromise motion to prevent the request by the Katz Group from being shot down completely, offering his support because both the downtown business association and the downtown community league supported the idea.

“I was trying to be pragmatic,” said McKeen, adding a denial from council could mean little anyway. Several developers denied permits under Edmonton’s existing rules have appealed to the subdivision and development appeal board and won.

“So why don’t we, in partnership with them, get some regulations in place so it’s not huge and we know where it’s going,” he said.

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Blowing the debate wide open

Edmonton’s 500-metre rule has been contentious for years. Critics say it unfairly benefits existing stores, preventing healthy competition and letting a few companies block newcomers.

But supporters say it prevents the proliferation of liquor stores in vulnerable neighbourhoods, along Edmonton’s main commercial walking streets where pawn shops and cash stores already create a poor image.

Several liquor store owners told council giving Katz an exemption would be unfair to all the smaller liquor store owners who follow the rules.

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It looks like next year they could debate the whole issue of liquor store locations again.

Council referred the larger 500-metre issue to council’s urban planning committee meeting Jan. 16. There, they hope to hear again from both sides and craft a motion to start another round of public consultation on if or how the rule should change. It could be limited to rules for downtown or blown wide open.

Why restrict liquor stores?

McKeen said he’s worried restricting competition has unintended consequences, restricting creativity, responsibility and creating a landlord’s market. It prevents store owners from moving even if a landlord jacks up the rent.

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“We want liquor stores to operate responsibly and professionally. Instead, we’re trying to do that through distance regulations, restricting the numbers,” he said.

But Coun. Tony Caterina, whose ward includes Parkdale/Cromdale and Alberta Avenue, said the 500-metre rule has served some vulnerable neighbourhoods well.

“We haven’t seen the proliferation in any area since this bylaw was introduced,” he said. “This is the start of a bit of a crack in the door.”

Voting in favour of the motion to refer the Katz Group application for further refinement were Mayor Don Iveson and councillors Tim Cartmell, Sarah Hamilton, Andrew Knack, Michael Walters and McKeen.

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